Brace yourselves, because San Diego home prices and rents soar in 2022.
KEY TAKEAWAYS
San Diego home prices and rents are soaring in 2022.
The biggest demand for home purchases in San Diego County is the coastal cities of La Jolla and Del Mar. Followed by northern county Rancho Santa Fe and Southwest Carlsbad.
Yet, affordable housing exists with condos and townhomes in the South Bay, Imperial Beach area, National City and San Ysidro, along with northwest El Cajon, Lemon Grove, and Lakeside.
Housing investors will find rents skyrocketing throughout San Diego County by as much as 20%.
San Diego TV Channel 8 CBS8 news story on January 20 announced: “San Diego home prices soar with some areas more affordable than others”.
Don’t let this news flash discourage you: “The median price for a single-family home across San Diego County was $842,000 in 2021, with condos and townhomes at $545,000.” That’s more than a 17% increase over the prior year!
According to Dr. Alan Gin, an economics professor at the University of San Diego, the San Diego demand for housing is strong for “all segments of the housing market” including condos, single-family homes, and townhomes.
Dr. Gin reasoned that the COVID-19 pandemic shutdown left people with nowhere to spend money. No one traveled forcing people to save their money. Sort of a “COVID piggy bank” with extra income from remote work.
The high demand for housing in the San Diego region is facing a lack of inventory. An influx of buyers entering the market is finding few opportunities.
Where is the Most Demand in the San Diego Region?
The most expensive housing is on the coast. Also, northern San Diego County saw soaring prices where the tech industry is located.
This makes La Jolla on the coast the most expensive single-family homes with a median sales price of just under $3 million during the past year showing a 28% price increase.
Del Mar, another coastal area, was just behind La Jolla with median sales prices over $2.6 million.
In northern San Diego County, the most expensive homes are in Rancho Santa Fe soaring by 33% to $3.6 million for single-family homes. That’s not surprising since Rancho Santa Fe has been historically priced high.
Southwest Carlsbad experienced a median sales price over $1.5 million for single-family homes. That’s an increase of almost 30%. That’s because they have an advantage with large plots of land.
Where to Find Affordable Housing in the Greater San Diego Region
Besides expensive single-family homes, affordability is found in condos and townhomes.
You can find condos and townhomes in the South Bay, Imperial Beach area where median sales prices are $600,000 which only show an 8% increase over the past year.
National City shows a lower median sales price at $416,000 while San Ysidro sits at $335,000 where both areas experienced a 20% increase over the past year.
Heading east, you will find less expensive condos and townhomes in northwest El Cajon showing a median sales price of $356,000 in 2021. Lemon Grove showed $365,000 and Lakeside was at $358,000.
What Can First-Time San Diego Home Buyers Do?
Learn the current housing market to understand the best areas within your price range. Keep up with what the housing market is doing. Also, understand your limitations.
Connect with an experienced local Realtor who can do market research based on your desires and needs. Your Realtor can navigate new listings and local statistics to find what’s reasonable for you.
SoCal Lifestyle Realty offers you experienced Realtors who know the housing market throughout San Diego County.
Contact us now so you can spend meaningful time finding your new ideal home.
San Diego Rents Increasing in 2022
Another TV Channel 8 CBS8 news story on January 14 revealed: “Skyrocketing rent hikes across San Diego County”.
Besides higher median sales prices, San Diego County is also experiencing skyrocketing rents over the last year.
This is good news for real estate housing investors considering San Diego County.
Chris Salviati, a housing economist, is “seeing rent growth far above past typical tends”.
Rent Increase by Percentage: Researchers at apartmentlist.com found rent prices grew by 18.2% over the past year in the City of San Diego. In addition, surrounding cities also experienced rent hikes in:
These cities showed rent increases between 17% and 20% over the past year.
Dr. Alan Gin, an economics professor at the University of San Diego, described these rent hikes as “huge”. Seeing 20% when in the past years only showed low single digits “is really a big number”.
Median Rent Prices: Likewise, studies from apartmentlist.com show San Diego City's median rent prices are $1,850 for a one-bedroom unit and $2,450 for two bedrooms.
Just like the median sales prices increasing for surrounding cities, rentals are experiencing similar spikes. For instance:
Carlsbad has listings of $2,220 for a one-bedroom and $2,820 for two-bedrooms;
Chula Vista is showing more affordable rents at $1,620 for one-bedroom units and $2,250 or two-bedrooms; and
Lower rents are available in the South Bay and in East County too.
In the past, rents increased annually between 1% to 5%, so why such higher rents now?
Chris Salviati claims more tenants are renewing their leases rather than moving during the pandemic. Also, the pandemic caused delays in housing construction. On top of all that, material costs increased (like lumber) and labor shortages slowed down new housing construction.
Thus, the San Diego region is experiencing increased housing demands with low vacancies and less new inventory available.
Looking to Rent in San Diego County?
You may not like that rents are increasing in San Diego County. Yet, if you are relocating or looking for a better rental it’s easier to contact a professional local property management company to see what’s available.
WeLease Property Management Company services all San Diego County.
Contact them to find out what’s available and get tips from experienced locals to make your rental search easier.
Looking to Invest in Housing Rentals in San Diego County?
SoCal Lifestyle Realty can help you to take advantage of San Diego’s skyrocketing housing market by finding ideal property investments. We know San Diego County.
Contact us now while the housing market is hot before it gets hotter.
San Diego Home Prices and Rents Soar 2022 – Conclusion
Yes, San Diego home prices and rents soar in 2022.
If you are relocating to San Diego or looking to move up with extra space for your expanding family within a tight budget, options exist.
The greatest demand in San Diego County with the most expensive single-family homes are:
La Jolla;
Del Mar;
Rancho Santa Fe; and
Southwest Carlsbad.
The most affordable housing in San Diego County to purchase are:
South Bay, Imperial Beach;
National City;
San Ysidro;
Northwest El Cajon;
Lemon Grove; and
Lakeside.
SoCal Lifestyle Realty can help you find your next home that fits your budget in San Diego County.
Contact us now to meet with one of our Realtors to explain the type of home you seek.
San Diego Rents Increasing in 2022
These cities show the largest increases in rents over the past year ranging from 17% to 20%:
Carlsbad;
Chula Vista;
Escondido;
Oceanside; and
Vista.
On the other hand, the City of San Diego and Carlsbad show the highest median rents for one- and two-bedroom units.
More affordable rents are found in:
Chula Vista;
South Bay; and
East County.
Take advantage of these opportunities as a housing investor by working with a local experienced Realtor.
SoCal Lifestyle Realty can help you to take advantage of San Diego’s skyrocketing
housing market by finding ideal property investments. We know San Diego County.
Contact us now while the housing market is hot before it gets hotter.